Author: elegant

Section 501(c) of the Revenue Code lists all requirements to become a recognized tax exempt charitable organization. Section 501(c)(3) list exempt status for organizations including charitable, religious, educational, scientific, literary, and testing for public safety. There are 22 different types of organizations including charities that are eligible for tax exempt status. The IRS Publication 557 provides further information for these organizations including charitable organizations. In order to operate as a non-profit charitable organization, the IRS should approve and grant a tax exempt status to the charity. Without this status any organization will be subject to Federal tax regulations.

The Section 501(c)(3) status gives two main advantages to a charity. It makes donations tax deductible to the donor and makes the charity eligible for grants from foundations. Generally they are non-profit associations or corporations and are tax-exempt unless they have unrelated business income which is subject to income tax. Before filing for a tax exempt status with the IRS using Form 1023, a charity must establish a corporation under its domicile state. The IRS publication 557 explains all required forms and other submittal requirements to obtain a tax exempt status including charities.

The Syrian uprising to over throw President Bashar al-Assad’s regime that started in January 2011 so far has claimed more than 60,000 lives and over 500,000 Syrians fleeing to neighboring Turkey, Lebanon and Jordan in order to escape violence and civil war.  Syrian refugees have become a nightmare for those aid agencies trying to deal with the human catastrophe.  Food, clothing and shelter which are basic needs of a population are becoming scares.  Medical assistance and schooling for displaced children are becoming unfathomable tasks for international aid agencies.

Many international aid agencies are dealing with the crisis.  Among those Doctors without Borders, International Medical Corps, International Rescue Committee, Islamic Relief USA, Mercy Corps, Save the Children, Red Cross, UNICEF, and UNHCR are major players in the theater.  The overwhelmed aid agencies are appealing to governments, international agencies and individuals for many types of donations including funds, medicines, and professional services.  In the meantime, the human crisis is getting intensified by the day.  International community so far failed miserably to resolve the human catastrophe.  The United Nations, Arab countries and others are engaged but so far unable to find a way to stop human violence and sufferings.

The 94-year old former South African President Nelson Mandela is recovering at home after being released from the hospital for treatment for a lung infection and a surgery to remove gallstones.  The anti-apartheid hero and Nobel Peace Prize winner is the South Africa’s first black president.

Since his one term in office from 1994-1999, he formed the Nelson Mandela Children’s Fund which advocates children causes and provides support to vulnerable, special needs and those children who lost their parents to AIDS.  The Fund focuses on children from birth to 22 years of age.  Nelson Mandela is the South Africa’s highest-profile ambassador for campaigning against HIV and AIDS.  In 2013, the European Tour will team up with Nelson Mandela Children’s Fund for six golf events in South Africa.  Scott Jamieson of Scotland won the first European Tour in early December 2012 and the proceeds from the tournament will benefit the Nelson Mandela Children’s Fund.  In addition to South Africa, the Fund has offices in U.K., U.S., Canada, France, Australia, Netherlands and Spain.  In 2010, the Fund earned an estimated $9 million USD.  Critics say the fund is involved in South African arms deals and blood diamonds controversies.

The United States Internal Revenue Code Section 501(c) identify 29 types of non-profit organizations ranging from certain corporations to qualified non-profit health insurance organizations that are exempt from paying income tax.  Charitable organizations are listed under Section 501(c)(3) and therefore, many of us refers to non-profit charitable organizations as 501(c)(3).

The application process to establish a non-profit charitable organization could be tedious, complex, and time consuming.  There are many Web sites that charge a fee to help you with the process.  Advertised fee varies depend on the Web site and if you seek assistance from any of these sites do your homework first.

If you are interested in establishing a non-profit charitable organization, here are some steps to remember.  Once you decide what type of organization you are interested in, create a written mission statement for your new organization.  You need to elect a Board of Directors for the organization and file Articles of Incorporation and establish bylaws. Filing Articles of Incorporation may need submittal of an Employee Identification Number (EIN) obtained from the IRS.  Once you develop your organization you can submit Form 1023 to IRS to establish 501(c)(3) and apply for tax exempt status with the state and local agency.

BBBSA is the oldest and largest youth mentoring charity organization in the United States serving over 220,000 children age between six to 18-years.  Their mentors work one-on-one with children to help develop confidence, learning skills and habits, and working with adults.  Children in the program are less likely to use drugs, skip school, use alcohol, and get into trouble with the law.  As a result those kids who are in the program do better at studies and relate better to adults.

BBBSA is a 501(c)(3) non-profit organization formed under the U.S. tax code.  Its mission is to help children achieve their potential through professionally supported one-on-one help from mentoring Big Brothers and Big Sisters.  A young New York City court clerk named Ernest Kent Coulter founded the organization in 1904 to help young kids whom he has seen going through the court system.  Even though it started in the City of New York, by 1916, it spread to over more than 96 cities.  In 1977, it joined forces with similar group helping girls and became the Big Brothers and Big Sisters of America.  It currently operates in all 50 states of the U.S. and 12 other countries around the world.